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Conservative influencer and Wharton Business School graduate Arynne Wexler was critical in a new post of President Donald Trump’s suggested credit card rate cap, saying it was essentially a socialist policy.
Wexler shared the video with her more than 386,000 Instagram followers, and it received over 54,000 views as of Thursday morning.
She pointed out that she attended the same business school as Trump and doesn’t agree with the president on “everything.”
“This 10% interest cap is being sold to you as if it will mean that people who currently pay high rates will simply have their rates lowered to 10%. And that is just not how this works,” she said.
TRUMP OPENS DOOR TO LIZ WARREN ON CREDIT CARD RATES AS GOP WEIGHS AFFORDABILITY FIGHT
Trump floated capping credit card interest rates at 10% for one year over the weekend, arguing that it would help Americans catch up on their debt.
“I want a cap on credit card interest rates, because some of them are almost 30%,” Trump told reporters on Monday. “And the people don’t know they’re paying 30%. No way. They’ve really abused the public. I’m not going to let it happen.”
Wexler warned this can negatively impact people trying to qualify for credit cards.
“Interest rates on credit cards aren’t some random punishment,” she said. “It’s how lenders price risk, because lending money is risky. If you make lending unprofitable or too risky, it will just disappear.”
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Wexler pointed out that democratic socialists like Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Bernie Sanders, I-Vt., supporting the idea is concerning.
“When socialists like Bernie Sanders and AOC are in favor of an economic issue like this, that should make you pause,” she said.
“I’m actually pretty surprised at this move by Trump since the headline will only last about a week. By the midterms, Americans won’t be spending because credit is going to be totally dried up if this actually happens,” Wexler added.
“There is an argument, by the way, in favor of credit card caps that I could agree with,” she continued. “Maybe not everyone should have credit cards because it makes it easy to overspend, but that’s not what they’re selling you on.”
She worried instead that some people who couldn’t get access to credit would go to predatory payday lenders.
JOHNSON WARNS OF ‘UNINTENDED CONSEQUENCES’ IN TRUMP’S CREDIT CARD RATE CAP IDEA
House Speaker Mike Johnson, R-La., also pushed back on Trump’s credit card proposal, which he noted couldn’t be done unilaterally.
“I talked with him about it briefly yesterday,” Johnson said at a press conference Tuesday. “The president is the ideas guy, and he’s laser-focused on the same thing that we are. And that is reducing the cost of living.”
“One of the things that the president probably had not thought through is the negative secondary effect; they would just stop lending money, and maybe they cap what people are able to borrow at a very low amount,” Johnson said, referring to how lenders might react to such a law.
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